Fed Beige Book Shows U.S. Economic Activity Mostly Stalled

In a report released on November 27, 2025, the Federal Reserve stated that U.S. economic activity had shown little change and was essentially stagnant since mid-October. The Beige Book, a key economic survey, revealed that only one of the Fed's 12 districts noted modest growth, while nine reported flat activity and two experienced slight declines. Employment saw a slight decline, with nearly half the districts noting weaker labor demand.

The report also highlighted that consumer spending decreased overall, though spending by high-income households remained stable. Tariffs and trade uncertainties were cited as significant ongoing headwinds for businesses. This assessment provided crucial input for the Fed's upcoming policy decision in December, strengthening market expectations for an interest rate cut.